Ramesh Bhatia HUF Vs ITO (ITAT Delhi)
Delhi Tribunal dealt with the claim of deduction u/s 80ID in respect of hotel business at Agra and a minor loss relating to a Gurgaon property. Assessee had claimed deduction u/s 80ID on the ground of operating a new hotel business under the name Hotel Siris 18, Agra. AO & CIT(A) held that the premises originally housed Hotel Rani Mahal constructed in FY 2007-08, which was closed in October 2008, leased to Assessee, and subsequently purchased in June 2009. Since section 80ID(3) specifically bars deduction where business is formed by transfer of a building previously used as a hotel, the authorities denied the claim. Tribunal noted that in AY 2012-13 in assessee’s own case it had already held the same view that Hotel Siris 18 was formed by takeover of an existing hotel business. Following that decision, Tribunal rejected Assessee’s claim for deduction u/s 80ID for AYs 2013-14 & 2014-15.
On the second issue, for AY 2014-15 Assessee claimed a small loss of ₹5,562 relating to its Gurgaon hotel during assessment proceedings though it was omitted in the original return. AO & CIT(A) disallowed it merely because it was not part of the return. Tribunal observed that the return was filed within the due date and the omission appeared inadvertent. Since the claim was otherwise genuine and noted in assessment proceedings, Tribunal allowed the loss.
